ABSTRACT
In a free-market economy, not only do output and wealth creation reflect the value preferences of the people, but these preferences, in turn, are reflected in the market signals. A key aspect of a successful market system is that the value of any physical production facility depends on the perceived value of the goods and services that the facility is projected to produce.1 Technically, the current value of the facility is the sum of the discounted value of all future outputs, net of costs. The value of the facility thus depends on how investors view the markets into which the output of the facility would be sold and on profitability. However, profitability will depend not only on such factors as the competence of management, the level of interest rates, the overall rate of inflation and the degree of mutual trust between sellers and buyers, but also on the extent of collusion and corruption among businessmen and officials in manipulating markets.
